Jayne Saxby is considering buying a new house for

Question 1

a.Jayne Saxby is considering buying a new house for $500,000 and needs to borrow money from a bank. Currently, ANZ bank offers a 30-year loan. She can choose to pay weekly at an interest rate of 4.55% pa, or fortnightly at 4.75% pa.

(i) Which payment option should Jayne choose?

(ii) If Jayne wants to pay $1,000 a week, how long will it take her to pay off the loan?

b.Jennifer Jean is 30 years old and has just had a baby son. She and her husband want to open a “Bump” savings account with Westpac for their baby and save up to $200,000 by the time he is 18 years old. Westpac’s savings rate is currently at 2.5% pa. Jennifer and her husband want to pay a monthly fixed payment at the end of each month.

(i) If Jennifer and her husband contribute 30% and 70% respectively to the savings, what is Jennifer’s monthly payment?

(ii) When the son is 18 years old, Jennifer and her husband will withdraw $100,000 to pay for his higher education. The rest of the savings will be kept in the son’s account at a deposit rate of 4% for another 10 years. During this 10 years, the son will be allowed to withdraw $1,000 at the beginning of each month for three years right after he turns 18. The rest of the money will be kept in the bank account until he turns 28 and will be used as a gift for the purchase of his own house. Calculate the value of the gift.

(iii) If the son wants to buy a house for $800,000 and uses the gift as a deposit for the house, and the loan term is 30 years with monthly repayments at a nominal rate of 4.5% per annum, what will be his monthly repayment amount?

Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies.

After making payment, solution is sent within 2 to 5 minutes on your Email ID. But it may take up to 1 hour in case of high load on server. Solution is available in Word or Excel format unless otherwise specified.

Disclaimer : MyAssignmentGuru.com provides assignment and homework help for guidance and reference purpose only. These papers are not to be submitted as it is. These papers are intended to be used for research and reference purposes only.